Mid-Year Review - 2025
As we're now past the halfway mark of 2025, it's a fitting time to reflect on what has been a turbulent time in markets - marked by volatility, yet defined by remarkable resilience.
From escalating geopolitical tensions to rapid AI innovation, global markets have ridden a wave of unpredictability with resilience. We narrowly avoided a bear market in the US, saved by a record-breaking rebound.
"The first half of 2025 has undoubtedly been a busy time in markets. Volatility has been rife, with media coverage dominated by negative headlines. However, the market's rapid rebound, reminds us of the importance to not react to market movements and instead focus on our individual financial objectives."
- Andrew Summers, Omnis Chief Investment Officer
Key Highlights: January–June
January
- Global markets surge leading up to the inauguration of Donald Trump.
- China’s DeepSeek unveils a new AI model, challenging US AI dominance.
February
- Investors rotate into European equities after a strong earnings season and growing concerns over fading US exceptionalism.
- Chinese equities rise on optimism around domestic AI advancements.
March
- US–China trade tensions dampen consumer sentiment.
- Germany responds to US policy with a major defence and infrastructure spending initiative
April
- 2 April: Trump announces sweeping global tariffs—markets tumble.
- 9 April: 90-day suspension of tariffs (excluding China) triggers a market rebound.
May
- Markets continue upward trend as US–China strike a trade deal and US-EU progress eases inflationary concerns.
- Bank of England cuts interest rates by 0.25%.
June
- Escalation between Israel and Iran leads to US intervention and a ceasefire.
- Equities rally as inflation concerns and fears of contagion subside.
Issued by Omnis Investments, which is authorised and regulated by the Financial Conduct Authority. Registered address: Auckland House, Lydiard Fields, Swindon SN5 8UB. This update reflects our view at the time of writing and is subject to change. The document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with your financial adviser. Omnis Investments is unable to provide investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Past performance should not be considered as a guide to future performance. Approved by Omnis Investments on 10 July 2025.
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